WEBVTT - Wanna Be a 401 (k) Millionaire?  Michelle Singletary Talks to Armstrong & Getty

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<v Speaker 1>When you're ready to ride Metro, we want you to

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<v Speaker 1>noble before you're found half stunt of suns, of statist,

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<v Speaker 1>extras at Metro. We're doing our part to keep the

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<v Speaker 1>DC area moving. Find out more at well mata dot

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<v Speaker 1>com slash doing our part. When I saw this you

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<v Speaker 1>become a four oh one K millionaire, I thought, here's

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<v Speaker 1>what you do. But you gotta be in your twenties.

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<v Speaker 1>Is there anything you can do if you're not in

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<v Speaker 1>your twenties? We wait, now, let's slay. Let's talk about

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<v Speaker 1>this with Michelle Singletary, who is the nationally syndicated personal

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<v Speaker 1>finance columnist, is done TV on finance and then then

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<v Speaker 1>personal savings and that sort of thing, and has an

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<v Speaker 1>award winning column appears a couple of times a week

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<v Speaker 1>in Washington Post syndicated nationally. Hey Michelle, how are you?

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<v Speaker 1>I'm fine? How are you good? Good? Good? All of

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<v Speaker 1>my retirement plans are scratch off tickets, all right, Seriously,

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<v Speaker 1>we're big, big, big believers in four oh one K.

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<v Speaker 1>You just do you have to do it? But where

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<v Speaker 1>do we begin? What's your advice? Well, you know it's

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<v Speaker 1>it's I think it's surprises people that you can become

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<v Speaker 1>a millionaire in your workplace plan. Um. And it's not

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<v Speaker 1>as hard as you think. It takes time and consistency.

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<v Speaker 1>And I heard you joking, you know, thirty years. But

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<v Speaker 1>and that's true. Most most of them have been investing

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<v Speaker 1>for their length of their career. But even if in

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<v Speaker 1>your thirties and forties, if you're working to your sixes

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<v Speaker 1>and seventies, you still have plenty of time to reach

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<v Speaker 1>their goal. Um, to be a millionaire in your four

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<v Speaker 1>o one K. I assume you tell people this is

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<v Speaker 1>I'm gonna tell my kids. First opportunity you have to

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<v Speaker 1>put money in a four oh one kay, first job

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<v Speaker 1>you have do it absolutely at the beginning of the

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<v Speaker 1>I mean when I started in my job, my first

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<v Speaker 1>new sweet the job, I remember, I come into a

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<v Speaker 1>huge fire and I called my grandmother, who I called

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<v Speaker 1>Big Mama, and I was like call then, yeah, I

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<v Speaker 1>was on a far pay USS. Did you go upstairs

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<v Speaker 1>and put money away for you your time froment and

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<v Speaker 1>save you. And I was like, are you kidding me?

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<v Speaker 1>A woman, I've got this big story on the front page.

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<v Speaker 1>And she hung the phone up on me. It was impressed.

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<v Speaker 1>She was said, do not call me back until you

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<v Speaker 1>go up to HR and make sure you start putting

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<v Speaker 1>away money for yourself. And I did that and every job,

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<v Speaker 1>I've always done that, and that's really what it takes.

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<v Speaker 1>I've got a daughter who just graduated from college for

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<v Speaker 1>our master's program, and I already sent her a text

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<v Speaker 1>I sit down and talk about what you're gonna do

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<v Speaker 1>in touse of her time. And what I know when

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<v Speaker 1>you is it just seems like it's you know, it's

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<v Speaker 1>never going to happen. And I don't have any money now.

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<v Speaker 1>So if you think old people chose to be old,

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<v Speaker 1>you know that is not gonna happen to me. But

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<v Speaker 1>if most old people could go back and tell the

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<v Speaker 1>younger post cells, they would say, hey, fool, don't you

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<v Speaker 1>know stop going out so much and drinking with their

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<v Speaker 1>friends and maybe take one less vacation. First of all,

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<v Speaker 1>don't wear that shirt. You look stupid. Take the money

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<v Speaker 1>from that stupid shirt and put it it's true. It's true.

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<v Speaker 1>And you know what I like about it. When we

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<v Speaker 1>looked at what the traits of a four one K millionaire,

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<v Speaker 1>it's it's it's just really simple stuff. You know, put

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<v Speaker 1>in them as much as you can, but at least

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<v Speaker 1>put it enough to get the company match. You know,

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<v Speaker 1>do it consistently whether the market is up or down.

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<v Speaker 1>That's the other thing. They didn't jump out when the

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<v Speaker 1>market gets crazy. I mean that's an eight Lots of

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<v Speaker 1>people jumped out and they lost the upswing of the market,

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<v Speaker 1>and then they invest in equities. You don't. You see

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<v Speaker 1>your twenties and thirties. You're not gonna put your money

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<v Speaker 1>in bonds. Come on, baby, you need more growth. So

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<v Speaker 1>don't be so conservative, don't be scared um and tell

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<v Speaker 1>those were the trades and you can do it well.

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<v Speaker 1>And I wish people would take the heart advice from

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<v Speaker 1>Warren Buffett that I did many many years ago. You know,

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<v Speaker 1>it's essentially by low so high. But he said when

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<v Speaker 1>people are getting when people are scared, I get greedy.

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<v Speaker 1>When the market is terrible, that's when you invest as

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<v Speaker 1>much as you can because prices are low and it

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<v Speaker 1>will grow. But listen, let's say I don't want to

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<v Speaker 1>dollar time on you know, young people and what they

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<v Speaker 1>ought to do, because you know, I care about that.

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<v Speaker 1>But about for somebody in their forties, maybe even fifties,

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<v Speaker 1>is it too late for them? I say it's never

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<v Speaker 1>too late now. Lots of financial people will just scare

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<v Speaker 1>people to devil. Oh you don't have three million dollars,

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<v Speaker 1>you're just good duh, you know, I mean that's just insane.

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<v Speaker 1>You know. Listen, it may mean that you're gonna have

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<v Speaker 1>a different retirement than you hope for, but it's never

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<v Speaker 1>too late. You've got to make some different choices. So

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<v Speaker 1>maybe you aren't going to buy some villain Florida or

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<v Speaker 1>travel all across the world on a cruise six months

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<v Speaker 1>out of the year. You know, maybe you're gonna have

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<v Speaker 1>shared housing with other folks in your family. Maybe you've

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<v Speaker 1>got a sister or brother and you guys can hand

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<v Speaker 1>your house together. So I just say, never think that

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<v Speaker 1>it's too late. But as soon as you realize you

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<v Speaker 1>don't have enough, you gotta buckle down, cut your expenses,

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<v Speaker 1>do whatever you can to try to stave and catch up.

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<v Speaker 1>Catch up provisions in the in the law. If you're

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<v Speaker 1>fifty or over, you can put in an extra six

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<v Speaker 1>thousand dollars. They'll do those kinds of things. That's the one.

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<v Speaker 1>That's the one in Michelle. I don't want to gloss

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<v Speaker 1>over that because I don't think a lot of people

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<v Speaker 1>know that when you hit fifty you can vastly increase

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<v Speaker 1>what you put away pre tax in your four one k.

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<v Speaker 1>That's right for two nineteen. You can put a maximum

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<v Speaker 1>if your primin. You can put a maximum if you

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<v Speaker 1>have an access to four one k. Now, I know

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<v Speaker 1>most people listen like that woman is insane. But but

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<v Speaker 1>trying to hit that mark as much as you can,

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<v Speaker 1>you know, just push yourself, push yourself, you know, because

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<v Speaker 1>it's gonna come a time where you're gonna need that money. Uh,

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<v Speaker 1>and that may mean making some sacrifices now so that

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<v Speaker 1>you have a secure retirement later. I like your every

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<v Speaker 1>phrase has emphasized the spending part of it. So many

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<v Speaker 1>people leave that out, the spending aspect of where your

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<v Speaker 1>money goes. Michelle Singletary is online syndicated columnists for the

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<v Speaker 1>WAPO and many other papers. You know. And to that end, Michelle,

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<v Speaker 1>my wife and I made a discovery. I don't know

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<v Speaker 1>you probably recommend stuff like this, But buying a car

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<v Speaker 1>is exciting, you know, for me, buying a new guitar

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<v Speaker 1>is exciting. Saving money is not exciting. So this may

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<v Speaker 1>sound dumb to you. We actually have the thermometer with

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<v Speaker 1>the different amounts of money on it and we colored

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<v Speaker 1>in with red for our savings goal. I love it,

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<v Speaker 1>love it. I think that's what you do. That's they're

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<v Speaker 1>The key word you said was goal because people always ask, well,

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<v Speaker 1>how do you do this? How do you say no

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<v Speaker 1>to yourself because you have a goal. My husband and

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<v Speaker 1>I had a goal to send all three of our

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<v Speaker 1>children to college debt free, which we have and we

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<v Speaker 1>did it in a five twenty nine times, which is

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<v Speaker 1>sort of like a four one came for college and

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<v Speaker 1>so that nobody has any debt. Because that's what we did.

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<v Speaker 1>We had a goal so we could say no to

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<v Speaker 1>them when they wanted all the things that their friends had,

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<v Speaker 1>because we knew that we wanted to send them to

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<v Speaker 1>college debt free. They didn't know, so of course they

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<v Speaker 1>fussed and yelled. And that's why we put extra lock

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<v Speaker 1>on our bedroom door so they all smother us in

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<v Speaker 1>all sleep because so but we're Okay, we can take

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<v Speaker 1>the lock off now because now they're graduating, you know,

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<v Speaker 1>and so. But the point is that always have reason

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<v Speaker 1>why you're doing this, and I don't help you. They

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<v Speaker 1>know the things, and you know, for the college, for example,

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<v Speaker 1>for each kid, we said two fifty a month for

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<v Speaker 1>the twenty years to fifty. You've s been that, going

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<v Speaker 1>to McDonald's three times a month, you know, I mean,

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<v Speaker 1>and it's it's doable for many people, not all, but

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<v Speaker 1>many people if you can do it. But you gotta say,

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<v Speaker 1>I wish, I wish you were in everybody's ear all

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<v Speaker 1>the time just because it helped her career. Oftentimes government

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<v Speaker 1>policy gets uh put in place to take care of

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<v Speaker 1>people who didn't do these things, as if it's my

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<v Speaker 1>fault that they're now broke because they, you know, took

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<v Speaker 1>nice vacations every year their whole life. My son, by

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<v Speaker 1>the way, he is speaking to your kids and not

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<v Speaker 1>getting the stuff. My son said to me the other day,

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<v Speaker 1>I'm the only kid in my class who hasn't been

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<v Speaker 1>to Hawaii, which I don't think is true. And even

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<v Speaker 1>if it were, that doesn't make any meat, you know,

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<v Speaker 1>trying to tear sony Hawaiian music on the day at

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<v Speaker 1>the front of him. You know, Now, get some skid

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<v Speaker 1>k boy, we'll have a theme party. Michelle Singletary is

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<v Speaker 1>a three has written three personal finance books, including her latest,

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<v Speaker 1>The twenty one Day Financial Fast Your Path to Financial

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<v Speaker 1>Peace and Freedom. Michelle, you're absolutely delightful. Great to talk

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<v Speaker 1>to you. I hope we can do it again. All right,

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<v Speaker 1>thanks a million flipping fantastic as she her lover, her

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<v Speaker 1>grandmother is my hero. She is great. Hangs up on her.

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<v Speaker 1>Don't you call me again until you go start saving,

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<v Speaker 1>just like your regular emphasis on the not spending end

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<v Speaker 1>of it. Yeah, well, listen, you've got your strategy is

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<v Speaker 1>and this, this is why we did the silly thermometer thing.

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<v Speaker 1>I look at that thermometer and I see it going up,

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<v Speaker 1>and I now all of my spending choices I weigh against.

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<v Speaker 1>Or we could make that thermometer go off a little more.

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<v Speaker 1>And that's our big goal. That's our you know, that's

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<v Speaker 1>the cajuna. And it just it, it's it becomes a

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<v Speaker 1>different sort of self indulgence. And so it's not self

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<v Speaker 1>indulgence versus discipline or happiness. Happiness a bad term like

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<v Speaker 1>excitement versus cool discipline. No, it's one excitement versus another excitement.

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<v Speaker 1>It's easier to do. Speaking of discipline, if you had

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<v Speaker 1>one of those donuts out there, I wish you wouldn't

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<v Speaker 1>bring that up. They're fantastic. No, I haven't yet, Michael Hughes,

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<v Speaker 1>what's coming up? When you're ready to ride Metro, we

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<v Speaker 1>want you to know we're ready for you. Here are

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<v Speaker 1>just a few of the people at Metro to tell

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<v Speaker 1>you how we're doing our part to keep riders safe.

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<v Speaker 1>We're cleaning before you've found half sign of signs of

0:09:36.920 --> 0:09:42.000
<v Speaker 1>statist no mask, no Metro need one. We have a

0:09:42.040 --> 0:09:45.000
<v Speaker 1>few extras at Metro. We're doing our part to keep

0:09:45.040 --> 0:09:47.640
<v Speaker 1>the DC area moving. Find out more at well notta

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<v Speaker 1>dot com slash doing our part